09.08.2017

IRD arrears – some examples

Here at Finance New Zealand we have assisted numerous clients to obtain finance when they had tax arrears. Here are a few examples:

  • A client with tax arrears paid the debt by borrowing against an unencumbered truck it had in its fleet. The interest amount on this loan was less than the fees that would have been payable to the IRD.
  • A client was wanting to refinance all its funding lines, transferring from a specialist funder to a trading bank. However, the bank wasn’t happy with the company’s tax arrears. We arranged refinancing for a small amount of the company’s borrowings which enabled it to clear its IRD debt. Once this was done, the bank was then happy to fund everything else.
  • A client with unpaid provisional tax needed a short-term loan to cover the debt. We obtained approval for the necessary finance, although the fees and rates were quite high considering our client intended to repay the loan in the short term. Subsequently, the client opted for a repayment plan with the IRD, which had a lower interest rate.
  • A client with significant GST arrears needed to borrow funds to clear the debt. Using equity in its fleet, we obtained the necessary finance to make the payment. This not only kept the IRD happy, but it tidied up the business’ accounts, making it easier to obtain additional funding from other potential lenders as needed.

If you have any questions about funding tax arrears or how we can help your business, contact your local Finance New Zealand business partner today.